Investment Decision Making: Do Experienced Decision Makers Fall Prey to the Paradox of Choice?

Web Disclosure as Mediating Role in the Relationship Between Paradox of Choice, Investor Experience, Financial Literacy and Investment Decision Making: Evidence From China

“…Second, web disclosure act as a mediating role in the relationship between paradoxes of choice, investor experience and financial literacy with investment decision making. Our direct relationship findings are in line with (Abreu & Mendes, 2010;Chernev, 2003;Kida et al, 2010). Our web disclosure findings are also consistent with Cormier et al (2010) and Cormier et al (2009), they reported that Web disclosure helps the investor for selecting the optimal choice and it also affects the earning depend on nature of disclosed information.…”

“…Financial knowledge is necessary because of the increase in new financial product and economic condition. So, financial literacy increases understanding of the available options along with it also decrease the investment options by limiting the optimal opportunity (Kida, Moreno, & Smith, 2010;Lusardi & Mitchell, 2007a, 2007b. The investor can get a good rate of return on investment with financial literacy and incentive to increase financial literacy mean an increase in financial knowledge and saving (Jappelli & Padula, 2013).…”

Regulatory focus and investment advisers' recommending behavior

“…Ideally, investment advisers would recommend suitable financial products based on the needs and risk appetite of their clients. However, in view of the wide range of investment options available in the market and the possibility of information overload, investment advisers may use heuristics when providing recommendations (Kida, Moreno and Smith, 2010), especially when their clients are willing to accept the risk associated with both risky and conservative investment plans. Under this condition, the pictures and messages contained in investment product brochures may influence them when providing recommendations to clients.…”

Behavioral mediators of financial decision making – a state-of-art literature review

“…Cervellati et al (2011) evaluated the role of gender, status, income and other individual characteristics on number of trades an investor places to estimate investor’s attitude toward risk and overconfidence. Kida et al (2010) gauged the role of choice-set size and decision outcome consistent with the notion of cognitive constraint of bounded rationality. Beber et al (2011) showed that portfolio rebalancing is consistent with sector rotation across different business cycles.…”